The recruitment agency industry was the “pawn” in the negotiations that led to EU member states agreeing the terms of the new Services Directive, according to Recruitment and Employment Confederation (REC) managing director Gareth Osborne.

The EU announcement confirmed that recruitment services are to be excluded from the scope of the Directive. This was primarily due to unfounded fears of “social dumping”, said Osborne. 
German MEPs have described the conditions of some temporary agency workers as like a “modern-day slave trade”. 

The REC lobbied MEPs intensively, but was resigned to defeat some weeks ago. Osborne described the directive as “watered down” and a “missed opportunity”. He believes that by accepting that agency staff would be excluded, UK MEPs were able to trade on this and push for more far-reaching measures in other aspects.

Osborne said: “The exclusion of temporary work services highlights some of the ongoing misconceptions that continue to exist across Europe. Perceptions are beginning to change, however, and the REC will continue to take a proactive lobbying campaign across the EU to ensure that other proposed legislation, such as the Agency Workers Directive, is resolved in a way that’s beneficial to the UK recruitment industry.”

The UK government described the directive as a “landmark achievement” in the realisation of the EU internal market. A DTI statement said: “The UK government warmly welcomes the political agreement reached on the Services Directive. This commitment by Member States will bring new opportunities for businesses, consumers and jobseekers, who will all benefit from the liberalisation of the Services sector.”